The Factors that can Affect your 650 Credit Score



The 650 credit score is the average score on a scale that ranges from 300 to 850 that is used in in Financial Accounting and Controlling (FICO). When you are below this score, you will be charged high interest rates when you borrow with the terms that will not be ideal for you to have the loan. You can try to improve your 650 credit score and this will ensure that your terms are better for you to acquire a loan or a credit. Below you will learn of the factors that affect your 650 credit score.

The first factor that will affect your credit score is the payment history of your previous credits. Read more about 650 Credit Score at https://thrifty650.com/credit-cards-650-credit-score/. This will account for 35% of your credit score and will determine the conditions that are imposed on you when getting a loan. This will also be evaluated by how timely you pay your loan and the incidences that you have had such as bankruptcy, repossession of your property among other credit factors. For you to improve this, you will need to pay your loan on time.

The next aspect that will affect your credit score is the level of the debt that you have. This will account for 30% of your score and they will consider the debt that you have in overall, the ratio of credit to your total loan and the balance you have to your loan limit. If you have a lot of debts, your credit score will be affect and therefore it is advised that you try cutting the debts that you have by paying them.

The other thing that will affect your credit score is the hard inquiries that you make. When you make a loan inquiry, they are listed with your credit report. Get more info about 650 Credit Score at https://thrifty650.com/. A few are are not more that three will not affect your credit score. But if you make many credit inquiries within a short time, they can reduce your points. You need to keep your applications as low as possible and this will be important in raising your points. The inquiries will take 10% of your credit score.

The type of the credit that you take will also have effect on your credit score. There are two types of credit accounts which can either be the revolving accounts or the installment loans. If you have both the accounts, you will have a better score because it will show that you have an experience in managing the both types of credit accounts. This accounts for 10% of the credit score. Learn more from  https://en.wikipedia.org/wiki/Credit_score